If you have any kind of savings or keep more than a few hundred pounds in your bank account then you are going to want to get the best return on your money. That means that you want a decent high interest bank account so you get a respectable interest rate paid on your money.
Keeping your money in a low interest bank account means that you are not getting a decent return on your money and you might as well just keep the money at home under the mattress. With no interest being paid on your savings the real value of your cash is being eroded due to inflation.
As inflation rises your money is worth less than it did before, this figure can be as much as 3 or 4 percent every year. In essence your one hundred pounds would only be worth ninety six pounds by the end of the year.
To avoid eroding your savings you need to keep your money in an account that offer the same or preferably higher then inflation interest. At the moment this may seem like wishful thinking but there are bank accounts with high interest rates that can give you an overall positive return on your savings.
The first tip is to shop around and look at the smaller banks. Smaller banks, internet only banks and currently the Irish Banks are offering a much higher rate of interest. Many people do worry that they will lose there money if the banks go under. There is no need to worry as firstly your money is protected by the government to a level of many tens of thousands of pounds. Secondly many of these so called small and internet banks are back by much larger multinationals.
If you are willing to move your savings every year or are willing to keep your money locked away for a fixed period you can attract a much better interest rate. Moving your money from bank to bank means you benefit from their initial bonus rates which usually last from six months to a year. After this you can then move the money to the next bank or even a different account at the same bank.
I am earning an average of 11% interest on my savings. Find out you could earn the same, click here to find out.
